Community Action of Minneapolis' former CEO, Bill Davis, is not cooperating with a court-appointed receiver reviewing the defunct nonprofit organization's finances, according to court records.
"The receiver's numerous attempts to interview Mr. Davis and to obtain documents and related information from him have been ongoing for over two months," an attorney wrote on behalf of the receiver, Michael Knight. "But Mr. Davis has been unresponsive or uncooperative in response to our requests."
A state judge hired Knight to help review the financial records of the nonprofit organization after the state shut it down late last year, alleging its leaders were using taxpayer money for personal gain. A state audit found that Community Action had misspent more than $800,000, including on such items as a celebrity cruise, tropical vacations and a personal car loan for Davis. Knight is conducting a deeper review to find if other money was spent inappropriately.
Knight has asked Davis to turn over financial records and any other information related to the organization. He has also asked Davis to sit down for an interview.
Since launching his review, Knight has found new incidents of potential misspending. Community Action senior leaders apparently used the organization's money to pay friends' medical expenses and credit-card bills. There also are allegations that members of senior management diverted money in the form of "wages" to friends and family members and allowed employees to double bill for meals and gas.
For two months, the receiver and his attorneys have written and called Davis. He has told them to reach out to several individuals who he says are his attorneys.
"[Davis] has even gone as far as to misrepresent to the Receiver that status of his legal representation," court documents show. "He has manipulated and taken advantage of his expressed desire to have counsel in an effort to 'whipsaw' the receiver and delay his required compliance."
Knight has asked a district judge to order Davis to comply with the investigation.
Davis could not be reached for comment.